Best Business Practices

1. Best Business Practices

2. Do you feel like this?

4. Top 5 Necessities in Construction Management in Today’s Environment • Profit/Loss statements by the 2nd of the month – month closed • Payroll/PO’s Updated DAILY to Job Cost, Service, General Ledger • Work invoiced 2 days after completion and nothing missed • Automatic Reporting: Status, Delays, Overruns, Daily reporting • Asset Digital Management: Paperless and Document Control

6. What are the excuses? • Not enough time in the day • My people will not do that • I don’t get paid enough • No one else does their job • Our customers wouldn’t like that • Vendors will not do that • We have never done that before • The owner won’t like that • They don’t understand what we do • We don’t like change! • When you the stop the excuses, you solve your problems!

7. Payroll/PO’s Updated DAILY to Job Cost, Service, General Ledger • Enter Payroll Time Daily • Payroll Cost instantaneously updated to Job Cost, Service, and GL • Direct cost to include Gross Wages, Tax Burden, OH Burden, Vehicle Burden • Receive Purchase Orders Daily • Enter Purchase Orders with detailed lines daily with promised dates • Run Unvouchered A/P on first day of month

12. Profit/Loss Statements by the 2nd of the Month • Run Unvouchered Accounts Payable • Run Service Work in Progress (Job End-of-Month Processing) • Journal Job Cost Work in Progress from WIP Report • Use AP Journal, Bank Deposits, and Bank Transfers for ALL cash transactions as incurred • Journal Entries should be minimal

13. Work Invoiced 2 Days After Completion and Nothing Missed • Work orders created prior to technician being dispatched • Purchase orders created with detail and applied to work order • Labor entered daily upon completion of work • Supervisor review within 24 hours of completion of ticket

14. Automatic Reporting: Status, Delays, Overruns, Daily Reporting • Purchase Orders • Inventory • Accounts Receivable • Payroll • General Ledger • Job Cost • Service Management

15. Late Purchase Order Items

16. Excessive Inventory on Trucks

17. Time Entered to Supervisors Daily/Weekly for Review

18. Unapproved Change Orders

19. Work in Progress

20. Job Cost Management

22. Service Management • Escalation Manager • Calls not being scheduled within 1 day • Emergency call not started within 2 hours • Work orders waiting parts for more than 2 days • Quote requests not addressed within 2 days • Work orders not billed within 2 days

23. Service Management Reporting • Service Profitability be Technician, Customer, Site, Department • Service Recommendations • PM’s renewals • Warranty expiration from equipment • Call backs, warranty, and gratis calls • Gross margin minimum required • Unbilled Work Orders

24. WORK ORDER FLOW CHART

25. Advantages of the Mobile Tablet and GPS •Screen looks and feels like a manual worksheet • Data is stored on the device so you donʼt have to be online to complete the work order • Full history of site/equipment • Ability to upload and download photos, documents, and diagrams • Ability to capture customer signature and email receipt • GPS interfaces and captures time and location of signature • GPS integration finds tech closest to next call and gives step by step directions to the site • Calls show on GPSʼs map • Issue purchase orders from tablet • Enter payroll time and work time = pay time • Ability to review weekly time sheet • Recommendations for future service collected on the spot • Tasks listed for review and to be checked off as completed • Add equipment and verify serial numbers • Review material requirements for PMʼs • Record metrics • Technician on call has ability to enter a new work order • Scripts collect initial data and are appended with technicianʼs information • Technicians are evaluated based on proper completion of paperwork

28. Asset Digital Management: Paperless and Document Control • Scanned attachments • Technician Signed Worksheets, Photos, Forms • Vendor Confirmations, Packing slips, Invoices, Statements • Employee documentation • Cash receipts, Credit applications, Customer correspondence • Job Cost contracts, submittals, transmittals, RFI’s • Accountant’s Journal Entries, Bank Statements

30. “If you don’t make an investment • that you need to make • you risk paying for it without getting it” • Henry Ford

31. “If you can track it, you can control it, • If you can Control it, you can change it, • If you can change it, you own it. • ****************************** • If you don’t own it, • you CAN NOT change it” • Vance H. Anderbery